-
Policy
Policy
Exclusive interviews with leading policymakers that convey the true policy message that impacts markets.
LATEST FROM POLICY: -
EM Policy
EM Policy
Exclusive interviews with leading policymakers that convey the true policy message that impacts markets.
LATEST FROM EM POLICY: -
G10 Markets
G10 Markets
Real-time insight on key fixed income and fx markets.
Launch MNI PodcastsFixed IncomeFI Markets AnalysisCentral Bank PreviewsFI PiFixed Income Technical AnalysisUS$ Credit Supply PipelineGilt Week AheadGlobal IssuanceEurozoneUKUSDeep DiveGlobal Issuance CalendarsEZ/UK Bond Auction CalendarEZ/UK T-bill Auction CalendarUS Treasury Auction CalendarPolitical RiskMNI Political Risk AnalysisMNI Political Risk - US Daily BriefMNI Political Risk - The week AheadElection Previews -
Emerging Markets
Emerging Markets
Real-time insight of emerging markets in CEMEA, Asia and LatAm region
-
Commodities
-
Credit
Credit
Real time insight of credit markets
-
Data
-
Global Macro
Global Macro
Actionable insight on monetary policy, balance sheet and inflation with focus on global issuance. Analysis on key political risk impacting the global markets.
Global MacroDM Central Bank PreviewsDM Central Bank ReviewsEM Central Bank PreviewsEM Central Bank ReviewsBalance Sheet AnalysisData AnalysisEurozone DataUK DataUS DataAPAC DataInflation InsightEmployment InsightGlobal IssuanceEurozoneUKUSDeep DiveGlobal Issuance Calendars EZ/UK Bond Auction Calendar EZ/UK T-bill Auction Calendar US Treasury Auction Calendar Global Macro Weekly -
About Us
To read the full story
Sign up now for free trial access to this content.
Please enter your details below.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
Real-time Actionable Insight
Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.
Free AccessMNI PREVIEW: Norges Set For August Hold; Hike On Far Horizon
Policy Rate Seen Unchanged at 0%, With First Hike Likely At Back End Of Three-Year Forecast Horizon
Norway's central bank is set to leave policy rates unchanged at a record low 0% Thursday following its August meeting, and signal a return to higher rates towards the end of its three-year forecast horizon, as a krone recovery eases any pressure for forex intervention.
The economy has outperformed Norges Bank's initial forecasts after the Covid pandemic hit and has largely re-opened. With death rates low by international standards, the bank is unlikely to do more than keep supplying ultra-cheap lending and dollar liquidity to the banking sector.
Its latest set of full economic projections, published in June's Monetary Policy Report, showed the policy rate at zero over the next couple of years before edging up to 0.5% in 2023.
While the August statement, though unaccompanied by quarterly projections, is likely to reaffirm the committee's view that rates should edge higher towards the tail end of its forecast horizon, persistent uncertainty over the path of Covid may prevent further fine tuning of the wording on the likely path of tightening.
KRONE
The krone hit record lows in March, amid a world-wide rush for dollars as the pandemic swept through major economies, prompting the Norges Bank to say it was monitoring the move and looking at the case for intervention.
But it has since regained its poise, with the import-weighted krone exchange rate index touching 111.22 on Aug. 13, its strongest reading since Feb 20. Depreciation could boost inflation by raising import prices.
CPI-ATE inflation was forecast in June at 3.0% this year and 2.6% in 2021, before reaching the 2.0% target in 2022. A rallying krone could help to attain the target earlier, leaving the central bank facing a relatively benign scenario of strengthening activity and declining inflation.
Governor Oystein Olsen has made clear he is not in favour of either negative interest rates or quantitative easing, pointing to thin debt markets and the fact that Norway's government bond yields are not a key determinant of other borrowing rates.
To read the full story
Sign up now for free trial access to this content.
Please enter your details below.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.